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Roy Bennett unhappy with foreigners investing in Zimbabwe
23 Mar 2011 at 05:11hrs | Views
Old Mutual has been slammed by exiled Zimbabwe politician Roy Bennett for playing "a sad and seedy role" in the controversial diamond mining in Zimbabwe's Marange diamond fields of Manicaland.
Bennett, the Movement for Democratic Change (MDC) politician who has been exiled in South Africa, addressed a fund managers' conference in Cape Town on March 11.
His speech tore into Old Mutual for its investment, which he described as an "unacceptable example of corporate greed and wilful negligence", which could not be "swept under the carpet any longer".
He added: "For a respected London-listed financial services company to continue its investment and shareholding in a joint venture with a disreputable scrap metal merchant… is simply inconceivable."
He was referring to the New Reclamation Group of Johannesburg that is involved in the diamond mining operations.
Bennett, who was the MP for the area where the diamonds are found, says the diamond fields are controlled by a military junta associated with President Robert Mugabe. The operations have been dogged by allegations that local inhabitants have been ill-treated by state security officials.
Yesterday, Old Mutual spokesman Lynn Bolin referred reporters to a speech issued by MDC leader and Zimbabwean Prime Minister Morgan Tsvangirai welcoming the foreign investment in the mining operation.
He told business people attending a Zimbabwe rough diamond auction in August last year that he was impressed by security structures that had been implemented at the Chiadzwa diamond fields.
Bolin confirmed that Old Mutual had an indirect interest in Mbada Diamonds of 1.5 percent via the scrap metal group New Reclamation. She said Mbada was a joint venture with the Zimbabwe government that has a mining concession over less than 10 percent of the Chiadzwa fields.
"To date, we have not received any proceeds from this indirect investment."
Old Mutual said it was engaging directly with Bennett regarding his comments "and doesn't wish to comment any further".
The Zimbabwe Guardian reported that Tsvangirai toured Chiadzwa days before the historic auction of diamonds.
He praised Minister of Mines Obert Mpofu for his sterling work in ensuring that Zimbabwe secured certification by the Kimberley Process that gave the country the green light to sell its gems.
Marange falls within the Chiadzwa district in the Manicaland lowlands of Zimbabwe.
New Reclamation chief executive Michael Movsas was reported by his office to be out of the country for a week and no cellphone number was offered. However, Bloomberg reported on Friday that the group's diamond mining venture with the Zimbabwean government had played "a significant role" in improving New Reclamation's finances, citing Moody's.
Bennett, the Movement for Democratic Change (MDC) politician who has been exiled in South Africa, addressed a fund managers' conference in Cape Town on March 11.
His speech tore into Old Mutual for its investment, which he described as an "unacceptable example of corporate greed and wilful negligence", which could not be "swept under the carpet any longer".
He added: "For a respected London-listed financial services company to continue its investment and shareholding in a joint venture with a disreputable scrap metal merchant… is simply inconceivable."
He was referring to the New Reclamation Group of Johannesburg that is involved in the diamond mining operations.
Bennett, who was the MP for the area where the diamonds are found, says the diamond fields are controlled by a military junta associated with President Robert Mugabe. The operations have been dogged by allegations that local inhabitants have been ill-treated by state security officials.
Yesterday, Old Mutual spokesman Lynn Bolin referred reporters to a speech issued by MDC leader and Zimbabwean Prime Minister Morgan Tsvangirai welcoming the foreign investment in the mining operation.
He told business people attending a Zimbabwe rough diamond auction in August last year that he was impressed by security structures that had been implemented at the Chiadzwa diamond fields.
Bolin confirmed that Old Mutual had an indirect interest in Mbada Diamonds of 1.5 percent via the scrap metal group New Reclamation. She said Mbada was a joint venture with the Zimbabwe government that has a mining concession over less than 10 percent of the Chiadzwa fields.
"To date, we have not received any proceeds from this indirect investment."
Old Mutual said it was engaging directly with Bennett regarding his comments "and doesn't wish to comment any further".
The Zimbabwe Guardian reported that Tsvangirai toured Chiadzwa days before the historic auction of diamonds.
He praised Minister of Mines Obert Mpofu for his sterling work in ensuring that Zimbabwe secured certification by the Kimberley Process that gave the country the green light to sell its gems.
Marange falls within the Chiadzwa district in the Manicaland lowlands of Zimbabwe.
New Reclamation chief executive Michael Movsas was reported by his office to be out of the country for a week and no cellphone number was offered. However, Bloomberg reported on Friday that the group's diamond mining venture with the Zimbabwean government had played "a significant role" in improving New Reclamation's finances, citing Moody's.
Source - Byo24News
